Using the Information Given Here,what Are the Earnings Per Share

question 135

Multiple Choice

Using the information given here,what are the earnings per share for DEF Company?
• Income = $180,000
• Number of shares outstanding = 60,000
• Price per share = $30
• Book value per share = $10

• A) $1.00
• B) $2.00
• C) $3.00
• D) $5.00
• E) $6.00

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Definitions:

Salary Allowances

Payments in addition to the basic salary, intended to cover specific expenses or compensate for particular conditions of employment.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Partner

A partner is an individual or entity engaged in a partnership, sharing the profits, losses, and management responsibilities within the business agreement.

Net Income

The leftover financial gain of a corporation once expenses and taxes are deducted from the total revenue.